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Why is Eurostar so expensive?

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Sad Sprinter

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Wanted to travel from London to Geneva next month. Almost 600 quid return, the vast bulk of that will be on Eurostar tickets. What's going on with the service? I kind of wish it was nationalised and subsidised to have cheaper fares. Or at least another operator run to compete with it, but that doesn't seem to be happening anytime soon.
 
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zwk500

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Wanted to travel from London to Geneva next month. Almost 600 quid return, the vast bulk of that will be on Eurostar tickets. What's going on with the service?
It depends which trains and what times you are looking at - Eurostar is very expensive in times of high demand because the cheap tickets get snapped up but can be relatively affordable if you choose less popular times.

I rarely pay more than £100 a leg booking 4-6 weeks out for Brussels-London. Tickets start at c.£40 return for both routes, so the answer to 'what's going on' is essentially 'people are using the train'
I kind of wish it was nationalised and subsidised to have cheaper fares.
It is nationalised - by the French! SNCF are majority owners of the parent company, not sure what SNCB/NMBS hold in the Eurostar specific subsidiary or the overall Eurostar group.

Eurostar used to be 40% owned by the British government through London & Continental Railways (the owners of HS1), but their share in Eurostar was sold to the Ontario teacher's pension fund at about the same time the pension fund was granted a 30-year concession over HS1, by messers Cameron and Osborne.
Or at least another operator run to compete with it, but that doesn't seem to be happening anytime soon.
Been promoted a number of times. DB want to run Cologne/Frankfurt-London Services but every time they get close either the Channel Tunnel safety rules or the economics of the business case trip them up, security often costing just too much to provide at German stations. I believe the Spanish have expressed interest in running an OAO operation from London-Paris as a direct competitor but nothing particularly serious appears to have come of it. DB at least got as far as getting an ICE3 into St Pancras (believe it was Diesel-Hauled from Calais though) as a publicity/demonstrator event.
 

duesselmartin

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Eurostar costs can vary a lot. Tunnel and border charges are quiet high, making a comparision to other operators/lines difficult.
I have done London to Germany for under 100 Pounds several times but that also depends on the booking engine.
Try SNCF or b-europe.com for a comparision.
Martin
 

ainsworth74

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Doesn't it cost something like £30 per passenger for Eurostar to access the tunnel? Which means even without accounting for any other costs (like staffing, maintenance, access fees elsewhere, etc) they've already got to charge something like £60 for a return trip just to cover the cost of their tunnel access!
 

zwk500

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Doesn't it cost something like £30 per passenger for Eurostar to access the tunnel? Which means even without accounting for any other costs (like staffing, maintenance, access fees elsewhere, etc) they've already got to charge something like £60 for a return trip just to cover the cost of their tunnel access!
According to the 2020 Network Statement: https://www.getlinkgroup.com/content/uploads/2019/09/Eurotunnel-network-statement-2020.pdf The price per passenger works out to EUR17.68 per passenger in 2015 prices (page 42). Doubling in 8 years is not impossible but I suspect the £40 advances wouldn't be viable if there's only a £10 revenue coming back to E* on it.
 

ainsworth74

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According to the 2020 Network Statement: https://www.getlinkgroup.com/content/uploads/2019/09/Eurotunnel-network-statement-2020.pdf The price per passenger works out to EUR17.68 per passenger in 2015 prices (page 42). Doubling in 8 years is not impossible but I suspect the £40 advances wouldn't be viable if there's only a £10 revenue coming back to E* on it.
Ah fair enough! I suspect I may have had £30 in my head as at those prices it would work out at roughly £30 for a return journey but not a single like I said originally.
 

RT4038

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Wanted to travel from London to Geneva next month. Almost 600 quid return, the vast bulk of that will be on Eurostar tickets. What's going on with the service? I kind of wish it was nationalised and subsidised to have cheaper fares. Or at least another operator run to compete with it, but that doesn't seem to be happening anytime soon.
Tunnel transit costs (on a per passenger basis), security (both criminal and immigration) costs, border control costs, High speed line access fees. If it is costing £600 return to Geneva next month, perhaps look for a cheaper day/time/route. [or is it Easter and demand is likely to be high even at those sort of prices?]

How would it be justified to subsidise international travel? Who would benefit from that, and is it something necessary? Not many and no.

The fact that no competing operator has appeared yet is probably indicative that costs are not so easily reduced and demand is probably quite seasonal with severe peaks and troughs?
 

Iskra

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Tunnel transit costs (on a per passenger basis), security (both criminal and immigration) costs, border control costs, High speed line access fees. If it is costing £600 return to Geneva next month, perhaps look for a cheaper day/time/route. [or is it Easter and demand is likely to be high even at those sort of prices?]

How would it be justified to subsidise international travel? Who would benefit from that, and is it something necessary? Not many and no.

The fact that no competing operator has appeared yet is probably indicative that costs are not so easily reduced and demand is probably quite seasonal with severe peaks and troughs?
What would be reasonable, would be a green aviation passenger tax for air passengers within a certain distance of London, which could be used to subsidise Eurostar fares as a greener former travel. But, probably only on flights to those countries easily accesed by Eurostar- France, Benelux, Germany. It would also incentivise those passengers to get the train rather than fly.
 

zwk500

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What would be reasonable, would be a green aviation passenger tax for air passengers within a certain distance of London, which could be used to subsidise Eurostar fares as a greener former travel. But, probably only on flights to those countries easily accesed by Eurostar- France, Benelux, Germany. It would also incentivise those passengers to get the train rather than fly.
Although I fully support a green aviation tax for short-haul flights, I think there are more effective ways to use the revenue than subsidising Eurostar. I'd first target first/last mile decarbonisation, because that will naturally involve rail as part of the answer. Electric buses, e-bike hire schemes, effective cycle facilities, effective cycle paths, better bus route planners, better integrated rail/bus fares, etc.
 

RT4038

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What would be reasonable, would be a green aviation passenger tax for air passengers within a certain distance of London, which could be used to subsidise Eurostar fares as a greener former travel. But, probably only on flights to those countries easily accesed by Eurostar- France, Benelux, Germany. It would also incentivise those passengers to get the train rather than fly.
Seems a reasonable idea, but probably a bit complicated in practice.
 

Sad Sprinter

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It's annoying, what if they nationalised HS1?

I really don't want to fly but looks like I have no choice.

Looks like a London to Barcelona service will never happen, that would be so wonderful.
 

RT4038

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It's annoying, what if they nationalised HS1?
Why would 'they' do that? The current owners would have to be bought out, and the cost of that passed onto E* ticket holders. If it wasn't, it would be a subsidy to them, and what purpose would that subsidy serve?

Looks like a London to Barcelona service will never happen, that would be so wonderful.
For all sorts of reasons, well discussed in this forum, you are probably right.
 

zwk500

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It's annoying, what if they nationalised HS1?
As I've mentioned, it was nationalised until 2014, when a 30-year subsidiary was sold to the Ontario pension fund
I really don't want to fly but looks like I have no choice.
There's a practical limit to the capacity you can offer on a market like Eurostar. At the moment London-Brussels is served approximately 2-hourly with c.900 seats, for 450 seats/hr. This is the equivalent of a Boeing 737 or Airbus A320 departing every 20-25 minutes from London to Brussels. There's only so much a market based around the train can offer.
Looks like a London to Barcelona service will never happen, that would be so wonderful.
Given it was viable to run London-Marseilles, with the extension of the LGV from Montpellier to Perpignan and if LGV Picardie ever happens, it's not completely off the table. But I don't see it being more than 1 or 2 times per week on a seasonal basis.
 

Graham H

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Doesnt Eurostar get more expensive as you approach travel dates ? I booked a return to Amsterdam in standard premier back in Feb for travel early May and it was £180 return. Personally I thought that was a good price subject to French and British strikes !
 

Daniel_P

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Wanted to travel from London to Geneva next month. Almost 600 quid return, the vast bulk of that will be on Eurostar tickets. What's going on with the service? I kind of wish it was nationalised and subsidised to have cheaper fares. Or at least another operator run to compete with it, but that doesn't seem to be happening anytime soon.

Surprised nobody has mentioned this yet, but an Interrail pass plus Eurostar reservations should cost a lot less than £600.
 

zwk500

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Doesnt Eurostar get more expensive as you approach travel dates ? I booked a return to Amsterdam in standard premier back in Feb for travel early May and it was £180 return. Personally I thought that was a good price subject to French and British strikes !
Yes. I believe they essentially have a set amount of tickets available at each price band, and as more tickets are sold the tickets step up into the next price bands. You will often find looking only a few weeks ahead that midweek early and late trains are into the c.£200 range while trains during the day are much closer to £100 looking at the same date.
 

Vespa

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I can say this the Ontario Teacher can look forward to a very very comfortable retirement courtesy of the British taxpayers paying a lot of money for their Eurostar tickets.

Ontario Teachers Pension fund have a lot of investment portfolios.
 

LNW-GW Joint

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In case people think Eurostar is out on a limb with high fares, all the airlines are charging far more than they did in 2019, even the cheapies.
They were all practically made bankrupt during the pandemic, taking on huge government/bank loans which need to be paid back.
They now have to restore their battered finances before fares can come down.
The Eurostar service also has some unique features which don't help it build capacity and make better fare offers (some of them Brexit-induced).
With EES and ETIAS to come, of course...
 

AdamWW

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Surprised nobody has mentioned this yet, but an Interrail pass plus Eurostar reservations should cost a lot less than £600.

Yes. I believe they essentially have a set amount of tickets available at each price band, and as more tickets are sold the tickets step up into the next price bands. You will often find looking only a few weeks ahead that midweek early and late trains are into the c.£200 range while trains during the day are much closer to £100 looking at the same date.

Yes they use a similar dynamic pricing model to airlines (or indeed advance purchase tickets on UK domestic trains) with various pricing "buckets" - once one sells out, then they move on to the next higher priced one.

Eurostar reservations stop being available on a given Eurostar service once the price reaches a certain level. I think it's fairly generous (maybe only the top two buckets excluded) but nevertheless it seems to result in very poor or zero availability over the summer.

It can also result in first class (or whatever they call it these days) being a similar price to, or even cheaper than, standard class.

Why would 'they' do that? The current owners would have to be bought out, and the cost of that passed onto E* ticket holders. If it wasn't, it would be a subsidy to them, and what purpose would that subsidy serve?

Competing airlines might also (legitimately, at least from a legal point of view) be a little unhappy too.
 

30907

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Surprised nobody has mentioned this yet, but an Interrail pass plus Eurostar reservations should cost a lot less than £600.
Quite, and 10% off ATM.
However, it might be difficult to get passholder reservations at peak times, and you would need to allow EUR20 for Paris or Lille-Lyon (the Seat61 economy route!).
But even so, that's below £300.
 

Bald Rick

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I think the OP has managed to be a little inflexible with their travel dates and times. There’s only 9 days in April where the cheapest fare to Paris is more than £85, and plenty where it is £64 or less. Even booking on Maundy Thursday with a return on the Tuesday (traditionally very busy days) can be done for £258. Given that April in Paris is a rather popular thing to do, especially with school hols, Disney and the like, I think that those fares are really quite reasonable.

coincidentally, choosing the same dates around Easter for the Paris - Geneva leg for times that would connect with Eurostar gives prices of €258.

So it would seem that the two legs are priced roughly the same. And neither seem particularly unreasonable.

Meanwhile a similar journey by easyJet on the same dates ranges from £300-£500 return, plus additional charges for bags / seat selection etc. Quite easily over £600.
 

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According to the 2020 Network Statement: https://www.getlinkgroup.com/content/uploads/2019/09/Eurotunnel-network-statement-2020.pdf The price per passenger works out to EUR17.68 per passenger in 2015 prices (page 42). Doubling in 8 years is not impossible but I suspect the £40 advances wouldn't be viable if there's only a £10 revenue coming back to E* on it.
Which makes even more of a mockery of charging Interrail passholders €30+ for their "reservation". That's on top of Eurostar's allocation of the pass revenue, which ought really to cover these fees anyway; revenue allocation is likely now a lot more accurate with the advent of mobile passes.

Coming back to the OP's original question, unfortunately for most places beyond Paris, Brussels or Amsterdam, Eurostar simply can't compete with flying for speed or price - and evidently it feels no need to do so, as it's pulled through fares. Amongst many other things, that will have to change if we are to have any chance of limiting climate change.
 

yorkie

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Wanted to travel from London to Geneva next month. Almost 600 quid return, the vast bulk of that will be on Eurostar tickets. What's going on with the service? I kind of wish it was nationalised and subsidised to have cheaper fares. Or at least another operator run to compete with it, but that doesn't seem to be happening anytime soon.
Eurostar is (deemed to be/operated as) a premium service, for which potential demand far outstrips the supply. A lot of money is to be made simply from people travelling between London and the key destinations served directly from Eurostar. The company is more than happy for you to fly to Geneva instead of taking the train because they can easily fill their trains with people doing shorter distance journeys, for which the train is the better option.

Whether it should be this way is another question; if anyone has any alternative ideas on how the service should be run that could be an interesting speculative thread. But this is the (unfortunate) reality :(
 

zwk500

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Whether it should be this way is another question; if anyone has any alternative ideas on how the service should be run that could be an interesting speculative thread. But this is the (unfortunate) reality :(
I think there's two or three threads already running on that question!
 

AdamWW

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Which makes even more of a mockery of charging Interrail passholders €30+ for their "reservation". That's on top of Eurostar's allocation of the pass revenue, which ought really to cover these fees anyway; revenue allocation is likely now a lot more accurate with the advent of mobile passes.

Though of course they have plenty of costs in addition to the tunnel transit.
 

Bald Rick

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Given it was viable to run London-Marseilles, with the extension of the LGV from Montpellier to Perpignan and if LGV Picardie ever happens, it's not completely off the table. But I don't see it being more than 1 or 2 times per week on a seasonal basis.

There is (was) a pretty big market for Brits going to their second homes or holiday homes in Provence, which managed to fill that train. IIRC it was 5h30 to Avignon TGV, and of course an extra hour on the way back.

Even when the LGV is finished Montpellier - Perpignan, and if stops were limited to one or two (for crew purposes, more than anything), it would still be 8h or so on the train. It’s the best part of 1,000 miles. That also means you need to fill 900 seats with one group of people going the same way at the same time, which for an 8h train trip compared to a 2h train journey is decidedly ‘ambitious’. It also makes it very unlikely to do an out and back in the same day, which means extra costs. To break even you’d be looking at something like £200 one way average fare with an 80% load factor, which I suggest is very unlikely given the competition. Even if Air Passenger duty was multiplied ten fold, it would still be a challenge.
 
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rvdborgt

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Which makes even more of a mockery of charging Interrail passholders €30+ for their "reservation". That's on top of Eurostar's allocation of the pass revenue, which ought really to cover these fees anyway; revenue allocation is likely now a lot more accurate with the advent of mobile passes.
Quite so. Eurostar is just one of the international TGV routes SNCF operate or have a big say in, and SNCF regard pass holders as cash cows, particularly on international TGVs.
 

RT4038

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Which makes even more of a mockery of charging Interrail passholders €30+ for their "reservation". That's on top of Eurostar's allocation of the pass revenue, which ought really to cover these fees anyway; revenue allocation is likely now a lot more accurate with the advent of mobile passes.
Except I have no doubt that they feel the allocation of pass revenue per passenger journey is nowhere near as much as single journey ticket holders, hence the hefty supplement.
 

Watershed

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Except I have no doubt that they feel the allocation of pass revenue per passenger journey is nowhere near as much as single journey ticket holders, hence the hefty supplement.
That's undoubtedly the case, but the same could be said for many other operators and yet they choose not to charge such hefty supplements. It's pure profiteering in my mind.
 
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